ajames54 wrote:
> In my opinion is the stupid thing was all the morons defending the
> current system as though laissez-faire was what we had. To call what
> we have a free market is to indulge in Orwellian double speak of the
> first order.
It actually is. A common misconception it is that a free market can
actually
exist and can actually work. Nothing more wrong. Any business/financial
system let loose it is going to crash. The reason is because the size does
mater and because of that, free market it is it own Nemesis.
If a sole proprietor wants to start a computer assembly business, he will
buy a harddrive for $65. Dell, buying directly from manufacturer, in bulk
of a million will be able to buy the same harddrive for $25 or less.
Just try to do the following experiment. Look at Walmart for a computer,
get
the list of hardware and software then shop on the internet for the parts.
You will be surprised to find out that even if you price your work at 0
(better productivity that a 0 wage can not be achieved) the WalMart
computer it is still going to be cheaper.
As a result, once a large company have a certain size that company will
stifle competition, destroying innovation and forcing the competition to
merge to stay alive. As a result, a free-market will become dominated by a
few number of large players. Once this happen, they stop really competing
among them and set up a natural oligopoly. Then, they make the rules and
control the market worst than any government will ever do.
The economic naive can say: "But they make them cheaper by mass
negotiation,
so the consumer win". The naive claiming something like that do not grasp
a
basic economic fact: The consumers are actually the workers.
Yes, by mass negotiation they bring the prices down, but in order to do so
they push the supplier to cut costs. By this they have to bring salaries
down or even close the US factory and move it to Asia. The pressure to
negotiate lower prices also push toward: lower wages, unemployment, and
lower or no benefits. The consumer who buy now a 500$ computer for $400 is
the same guy who lost his 60k job + pension and full health coverage for a
35k job with no benefits. An 20% drop in prices is payed with a 50% drop
in
wages and benefits.
In the end, the in debt and squash consumer will stop spending then the
economy collapse. This is how unregulated free-market really works.
--
The world of the future will be fully democratic or will not be at all.
Democracy Highlander
P.S.:
When I say "democratic", I use the word democratic coming from democracy
not
from Democratic party. I am not connected in any way with Democratic party
and if they fail to do as promised and cut cor****ate corruption I have no
problem to turn on them and blog against them too.
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